XL has put its £1million Loan from Crowdstacker investment platform to good use
In early 2018 XL completed a £1million P2P Loan on the Crowdstacker investment platform.
XL Group used the funds to purchase vehicles at substantial volume discounts, which were then leased on to its customers - individuals and UK SMEs - for a short term of 6 months.
The XL P2P Loan offered to investors a 4% p.a. return over a seven month term, and over 250 investors took up the opportunity. XL loans investors have now received their full capital repayments as well as interest.
A great example of Crowdstacker investments in action
This is the latest business of those borrowing via the Crowdstacker investment platform to reach the end of its loan term following a successful raise and subsequent deployment of cash.
“We focus on businesses that need to raise larger sums of money to help them grow, create jobs and reach the next level of success,” explains Karteek Patel, CEO of Crowdstacker.
The UK’s P2P lending association, the P2PFA, recently released data showing that P2P platforms had raised over £900m per quarter in 2018 for British businesses.
“The process of directly linking investors with businesses which need to diversify or increase their funding lines is becoming more established every year.
“XL is a prime example of an investment which has enabled investors to earn an inflation-beating 4% p.a. return on their money over a seven month term, at a time when savings accounts or cash ISAs are struggling to do the same.”
Crowdstacker investments can offer built in security and tax efficiency
The focus was on putting in place security. To limit risk, XL entered into buyback agreements with the manufacturer or dealer for each vehicle it purchased with Crowdstacker investor money. Plus, the entire investment was secured on the assets of XL CST Limited via a first ranking debenture. These assets include the vehicles purchased as well as the vehicle lease income.
Crowdstacker’s loans are eligible to be held in an Innovative Finance ISA account (IFISA) as well as the standard P2P Account, where investors could benefit from the Personal Savings Allowance (PSA). This offers investors the ability to access tax efficient investments, subject to their own individual tax status.
Our website has all the information you need to find out more about investing on the Crowdstacker investment platform.
Your capital is at risk if you lend to businesses. Lending through Crowdstacker is not covered by the Financial Services Compensation Scheme. Tax treatment is dependent on an individual’s circumstances and may be subject to change in the future. For more information please see our full risk warning https://crowdstacker.com/risk-warning.
Crowdstacker Ltd. is authorised and regulated by the Financial Conduct Authority (frn. 648742).